| The manufacturing industry is a crucial driver of industrialization. Under the background of economic globalization, the transformation and upgrading of the manufacturing industry determine whether China will succeed in its transition into a global manufacturing powerhouse. This transition will greatly influence the progress of industrialization and modernization. The transformation and upgrading of the manufacturing industry rely on the advanced technology, which is mainly developed by enterprises. Top managers inside the enterprises make the crucial decisions and strategies. The horizon, motivation and behavior of them greatly influence the technological innovation of the enterprise. The frequency of turnover affect the tenure and horizon of top managers. If the turnover is too frequent, it will lead to the short-sight of top managers, which will make them input inadequate resources into long-term technological innovation. The turnover will also interrupt the implementation of the technological innovation strategy and lower the efficiency of the transformation of resources into new technology. The internal governance mechanism, which mainly includes the nature of controlling shareholder, the degree of concentration of shareholding, and the structure of the board of directors play an important role in governing top manager. Therefore, it is meaningful, both in theory and in practice, to study the impact of top manager turnover on corporate technological innovation under the perspective of corporate governance.This paper selects the firms ranked as C manufacturing industry in Industry classification guidance of listed companies which is revised by the CSRC in 2012 as the objects of the research. This paper utilizes the panel data from 2009 to 2012 to study the moderating effect of corporate governance on the relationship between top management turnover and corporate technological innovation. Based on theoretical derivation, this paper proposes that the nature of controlling shareholder, the degree of concentration of shareholding and the structure of the board of directors have a moderating effect in the relationship between top management turnover and corporate technological innovation. After two stage least square regression analysis, the results indicate that top management turnover lowers the efficiency of corporate technological innovation; state ownership positively moderate the relationship between top management turnover and corporate technological innovation; shareholder concentration exhibit a u-shape moderation effect on the relationship between top management turnover and corporate technological innovation; the increase of the degree of independence and diligence of the board of directors have a positive impact on the relationship between the top management turnover and corporate technological innovation. The conclusions will have certain reference meaning for the practice of corporate technological innovation. |
